BYD: Between Record Exports and a Home-Market Dip
Vertical integration remains BYD’s trump card. The group controls the value chain from lithium mining through semiconductor production to the finished battery cell. This approach pays off in times of geopolitical tension. Capital stakes in raw-material producers such as Shenzhen Chengxin Lithium secure access to critical materials, while the company’s own Blade Battery sets the technological pace. BYD did withdraw from a Chilean cathode project, but for economic rather than strategic reasons. Its dependence on external suppliers remains low, giving the company a clear advantage in stability in a volatile market environment.
The June figures paint a divided picture. 403,472 vehicles sold mark the strongest monthly sales of the year, driven by a record-worthy 175,349 export units, up 95%. But the home market is weakening. China sales slumped 22%, and group sales closed the first half with a 15.7% decline. The export share climbed to 44%, compared with 24% the year before. BYD overtook Tesla in the BEV segment in the second quarter, delivering 557,090 electric vehicles, compared with an estimated 396,500 for Tesla. The annual target of 1.5 million export units has already been more than half reached by mid-year.
Strategically, BYD is turning its gaze to Europe. The EU’s special tariffs of 27.4% weigh on business, but the Hungarian plant is set to start up in the fourth quarter of 2026. A second site in Spain or France is currently being examined. Buying an existing factory could take effect faster than a new build. The model offensive is running in parallel. The all-electric Tang SUV with the second-generation Blade Battery reaches a 950 km range, and the Seal 08 booked 65,000 orders within 30 hours. In the energy storage business, BYD also signed a contract for Poland’s largest battery project, at 2.4 GWh. BYD is transforming from a Chinese e-car maker into a global supplier. The share is currently available for around EUR 9.331.
Rock Tech Lithium: Into the Next Phase with Strong Partners
In April, Rock Tech Lithium moved up a gear. The Canadian lithium developer secured the BMI Group as an anchor investor, which intends to support the planned converter in Red Rock, Ontario, with CAD 200 million in support. The model behind it is a classic GP/LP structure. Rock Tech operates as the general partner, while BMI remains in the background as a limited partner and provides capital. That is only one side of the coin. In parallel, the collaboration with Siemens is running at full speed, developing a digital virtual twin of the plant. It can not only make the plant’s operations more efficient but also serves as a blueprint to properly accelerate the construction of future converters. Backers behind it and modern technology in hand – with this combination, nothing stands in the way of the upcoming final investment decision. The definitive feasibility study (DFS) for the Canadian converter began at the end of June.
It gets interesting when you look at Canadian industrial policy. Any foreign company seeking to land major contracts in Canada cannot avoid local value creation. This applies in particular to thyssenkrupp, which, with its submarine order worth over EUR 37 billion, faces a decisive hurdle: presenting binding partnerships with Canadian firms, or else risk losing its status. This is precisely where a strategic window opens for Rock Tech. Back in 2022, there were talks between thyssenkrupp Materials Trading and Rock Tech about a raw-materials partnership. These old connections could now be revived in Canada, as part of the required local value chain.
The demand outlook for lithium remains unbroken. Mercedes-Benz positioned itself early and signed a firm supply contract with Rock Tech for 10,000 tonnes of lithium hydroxide per year – enough for about 150,000 all-electric vehicles. For Rock Tech, the Mercedes deal means planning security and credibility. The Guben converter remains a valuable asset, but the strategic lever now lies in Canada, where the company can control the entire value chain with its own mine and converter. That is a position with few equals in the Western lithium industry. The share currently trades at around CAD 0.78.
Mercedes-Benz: Between Technology Offensive and Sharp Austerity
Mercedes-Benz is fundamentally restructuring its business. The new portfolio strategy draws a clear distinction between Top-End, Core and Entry Luxury, with over 75% of investments flowing into the upper segments. A product offensive with 15 new electric models is intended to make the model range future-proof. Technologically, the group is banking on three new electric platforms and its in-house MB.OS software, designed to turn every vehicle into a “Software-Defined Vehicle”. Raw-material supply is secured through partnerships such as the one with Rock Tech Lithium, which makes strategic sense.
The management board has launched a tightened austerity programme. The special payment for 90,000 employees has been postponed, the 35-hour week is up for discussion, and home office could be scrapped. The reasoning: labour costs that are too high by international comparison. The workforce responded with massive protests. In Sindelfingen alone, thousands gathered. IG Metall is announcing further actions. A delicate balancing act between necessary cost discipline and social peace.
The figures speak a clear language: profit slumped by almost 17% in the first quarter, and the margin in the passenger-vehicle business sits at the lower end of the target corridor. The Chinese market is causing particular concern, as sales there fell by more than a quarter. The stock market reacted with a share price loss of around 25% since the start of the year. The decisive question is whether the austerity measures will take hold in time. The half-year figures on 28 July will show whether the company can manage the turnaround, or whether the transformation continues to founder on hard economic realities. The share currently trades at around EUR 46.28.
The lithium storage boom opens up an underrated return pillar, yet the strategies differ fundamentally. BYD uses its vertical integration and record exports to transform itself from a Chinese manufacturer into a global producer. Rock Tech Lithium positions itself with strong partners such as Siemens and a clear Canada focus as a Western value-creation hopeful. Mercedes-Benz, by contrast, is struggling with profit slumps and austerity, its technology offensive at risk of foundering on hard cost realities.
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